N.Y. Public Authorities Law § 1048-u: Exemption from taxes, assessments and certain fees; payments in lieu of taxes

§ 1048-u. Exemption from taxes, assessments and certain fees; payments

in lieu of taxes. 1. It is hereby determined that the creation of the

authority and the carrying out of its corporate purposes is in all

respects for the benefit of the people of the city and of the state and

is a public purpose and the authority shall be regarded as performing a

governmental function in the exercise of the powers conferred upon it by

this title and shall not be required to pay any taxes, special ad

valorem levies or special assessments upon any real property owned by it

or any filing, recording or transfer fees or taxes in relation to

instruments filed, recorded or transferred by it or on its behalf. The

authority shall be deemed a public authority for the purposes of section

four hundred twelve of the real property tax law.

2. Notwithstanding any provision in this section to the contrary, the

authority may pay, or may enter into agreements with any municipality to

pay, a sum or sums, annually or otherwise, or to provide other

considerations to such municipality with respect to real property owned

by the authority located within such municipality.

3. Any bonds issued pursuant to this title together with the income

therefrom shall be exempt from taxation except for transfer and estate

taxes. The revenues, moneys and all other property and activities of the

authority shall be exempt from all taxes and governmental fees or

charges, whether imposed by the state or any municipality, including

without limitation real estate taxes, franchise taxes, sales taxes or

other excise taxes. The state hereby covenants with the purchasers and

with all subsequent holders and transferees of bonds issued by the

authority pursuant to this title, in consideration of the acceptance of

and payment for the bonds, that the bonds of the authority issued

pursuant to this title and the income therefrom shall be free from such

taxation, as aforestated herein, and that all revenues, moneys, and

other property pledged to secure the payment of such bonds shall at all

times be free from such taxes as aforestated herein.